Darkfall – Proposal for Enhancement

I was thinking about the new player system revealed yesterday and thought I’d write down a few ideas for Darkfall.
Goals
Disclaimer
A lot of balance and adjustment would be needed to make sure this system wouldn’t be abused. Consider the details below as a rough guideline of the concept, not hard rules for implementation.
Concepts
Add both stationary and patroling city guards to NPC cities.
Attack or kill a blue player in an NPC city within sight of a city guard and you’re now wanted by the guard. Assisting such a player with buffs or heals would confer the same status to the assistant. ‘Attack’ could be defined as the same conditions that would normally turn you grey.
The city guard goes after the attacker and assistants. This may involve one or more guards. The guards should be very difficult to kill.
Your options at this point are: Fight the guards, Flee, or Bribery.
If you are killed by the city guard, you have no tombstone. They take all of your inventory.
If you manage to flee the city and escape the guard, you’re now on a wanted list and considered to be an outlaw. The city guard in all of that race’s cities will attack on sight. For a higher fee than before, they could still be bribed to leave you alone and remove you from the wanted list.
Players can review the wanted list, hunt those players on it, kill them, and receive a small reward from the city guard. The balance for this component would need careful adjustment to prevent farming abuse. It might not be workable, but I like the idea of a bounty system…
The more offenses you commit without being killed by the guard or clearing your name from the list by bribing them increases your bounty. You become more of a priority to be hunted by other players as your value to them increases.
A system similar to this would offer several benefits: